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Roche

Swiss pharmaceutical company Roche has always been a maverick. While its competitors chased megamergers and mass-market medicines in the 1990s, the Basel-based company focused on the whole spectrum of patient care. That meant investing in diagnostic tools to predict, diagnose, and monitor disease as well as to develop highly targeted medicines to treat illness. At the same time, CEO Franz B. Humer never bought into the bigger-is-better idea, steadfastly rejecting merger overtures.

Now it turns out that the 108-year-old company was ahead of its time. Recent advances in genomics and biology mean that customized medicine is fast becoming a reality. While other companies struggle to generate single-digit gains, Roche's profits are growing fast. In 2004, net income more than doubled, thanks to strong performance of its portfolio of cancer drugs and diagnostic tests.

Roche shows no signs of slowing down: For the first quarter of 2005, sales rose 22% due to strong demand for new cancer treatments Avastin and Tarceva and anti-influenza drug Tamiflu. "The industry is realizing that the trend toward personalized medicine is unstoppable," Humer says. "Some companies are beginning to move in our direction."